Catherine Murphy (Kildare North, Social Democrats)
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527. To ask the Minister for Education and Skills the amount paid in late interest payments and penalty payments by his Department in each of the years 2017 to 2020 and to date in 2021 in respect of late payments being made to suppliers, service providers and contractors in tabular form; and the measures he has put in place and or is implementing to reduce late payment interest and penalty payments. [44005/21]

Simon Harris (Wicklow, Fine Gael)
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Under the Prompt Payment Act 1997, Prompt Payment Interest (hereafter “PPI”) is applied to valid invoices which are not processed within 30 days of receipt. These regulations:

- Apply to commercial transactions in both the public and private sectors,

- Outline the statutory rate of interest applicable (currently 8% plus the applicable ECB rate), and

- Detail the compensation payable depending on the value of the invoice as follows:

- Invoice Amount not exceeding €1,000 - Compensation of €40.

- Invoice Amount exceeding €1,000 but not exceeding €10,000 - Compensation of €70.

- Invoice Amount exceeding €10,000 - Compensation of €100.

Since 2009, all Government Departments are committed to reducing the payment period to suppliers for commercial transactions from 30 to 15 calendar days.

The Department of Education provides the Department of Further and Higher Education, Research, Innovation and Science with financial shared services including vendor payment processing. This shared service regularly monitors payments to ensure that suppliers are paid as promptly as possible to minimise, where possible, PPI & associated compensation payments.

From 2 August 2020 to 31 March 2021 due to a transition period on the Financial Management System, all prompt payment returns for both the Department of Further and Higher Education, Research Innovation and Science and the Department for Education were recorded and reported by the Department of Education.

Following the successful updating of the Financial Management System, from April 2021 onwards, Prompt Payment returns are now reported separately.

Outlined below are PPI figures which relate to D/FHERIS from 1 April to 30 June 2021:

In line with Government Decision S29296 of 19 May 2009, all interest and penalty payment values are published each quarter on the Department's website including the Department's Aegis Bodies. This report is available in the link here.